This study seeks to analyze the continuity and survival of the mining sector in one of the most long-lived mining districts in the world, and the socioeconomic externalities that arose over a period of 150 years. Its most characteristic element was the development of two diametrically opposed business models in the same space: one based on a system of very small-scale mines, which were highly labor-intensive with a low capitalization, and another that was implemented in the 1950s based on a large-scale model, which was intensive in capital but with lower profit margins. In both cases, the activity had a growing impact on the environment and little spillover effects on other economic activities. The process of environmental degradation culminated in the 1960s–1980s with the pollution of an extensive stretch of the Mediterranean coastline and the complete disappearance of Portmán Bay, in what was possibly the most important environmental disaster in the history of the Mediterranean Sea. The institutional framework in which this activity took place played a key role in all of this.

This article analyzes the consequences of environmental public policy when private agents have access to abatement activity, financed by private contributions. The issue at stake is the interactions between private involvement in abatement activities and public intervention. The analysis of the consequences of environmental tax policy on capital and environmental quality shows that public and private abatements may or may not be substitutable, depending on abatement efficiencies and on the initial economic and environmental inefficiencies.

In this paper, we analyze the effects of population aging on economic growth and the environment in a two-period overlapping generations model of growth, aging, and the environment. We show that aging may be beneficial to economic growth and the environment under perfect annuitisation, while possibly harmful under imperfect annuitisation. We also discuss the implications of our results for environmental policy in an aging economy.